I attended Funko Fun Days dinner at SDCC and went to Brian (president) directly to ask about the ThunderCats line/license in general. To paraphrase he basically said that the line "did okay".
I got the impression fan response was under what they had hoped.
He also stated the license was on par with MOTU but not as popular as shows such as SOA.
That really bummed me out.
I thanked him for at least creating the SDCC exclusives this year.
If it wasn't for that Warner probably wouldn't of updated it's Facebook page.
Here is my theory:
The ThunderCats royalty structure is expensive, restrictive, short-lived and complicated. I believe WB, Rankin Bass and the Ted Wolf estate gets a piece of each sale. This would probably explain why the licensing costs are so high. The expense of the license has been mentioned as an issue by Jerry from Pop Culture Shock. Cost and fan response was the cause not to renew.
Hard Hero really wanted to go beyond the statues they released but based on my talks with some people involved in the line they were rushing to do statues before the license expired. An unnamed source told me the "license was pulled from them" Ultimately they said the economy put them under. We've heard similar "rushing to complete" stories from Icon Heroes.
I believe the Bandai license directly affected Icon Heroes statues from continuing. Bandai's action figures license was too similar to Icon Heroes approximate scale resins. If you recall Icon Heroes wanted to go from a resin Jackalman to a plastic version and include interchangable arms towards the end. The restictions required Icon Heroes to peg the legs in their figures. Mumm-Ra was the only figure released in plastic with no interchangeable parts.
Bandai plain and simple just missmanaged the line. Black/miss-colored joints, changing scales and poor sculpting infuriated hard core fans. Although the show itself was critically acclaimed and generally liked by hard core fans the WB wanted toy sales from children. The show was also too expensive to animate for its core demographic. CN had an upcoming show that was similar but cheaper to produce (Chima) and that won out. So when legacy fan viewership dropped CN started messing with airings.
As for the reason why the show didn't work for it's demographic? I believe TC2011 was in constant identity crisis trying to appeal to children when the storyline and some of its themes were more adult. So you basically have a classic line that doesn't appeal to legacy fans and new toys didn't appeal to a young audience.
Of all the released products Mezco and Icon Heroes Mini-mates have done the best. Both of these lines have the impulse purchase/low cost/barrier to going for them. These lines reached the casual legacy fan.
As for the future..
Arthur Rankin's passing may have put the royalty structure in limbo.
I've read articles that Arthur was not properly compensated for accounting errors made by the WB when he was alive (
http://enchantedworldofrankinbass.blogspot.com/2009/07/arthur-rankin-jr.html)
The only licensee that has something in the works is Prototype Z which is stuck in approval limbo on Panthro.
The optimist in me wants to believe that WB is shoring up the license for something big in the future. The impressions from quotes by Icon Heroes (license expired..but we would revisit) and Mezco (please hold out hope) give the impression something is in the works.
I believe for the license to work we need something big like a movie to re-launch the franchise. The movie has to appeal to kids first without totally alienating classic fans. Hopefully new and old fans alike will build the momentum to bring in a better return on investment.
As of right now the cost of the license vs the return only seems to work with small or lower cost items (Mezco, Mini-Mates).
The 30th anniversary is January next year. I believe WB has to have some turtle envy as of late and revisiting ThunderCats as a movie is not off the table yet.